User Account

All Pages

Describe the currency transaction that omni should undertake

Assignment Help Operation Management
Reference no: EM13919837

Omni Advisors, an international pension fund manager, plans to sell equities de- nominated in Swiss francs (CHF) and purchase an equivalent amount of equities denominated in South African rands (ZAR).

Omni will realize net proceeds of 3 million CHF at the end of 30 days and wants to eliminate the risk that the ZAR will appreciate relative to the CHF during this 30-day period. The following exhibit shows current exchange rates between the ZAR, CHF, and the U.S. dollar (USD).

Currency Exchange Rates

ZAR/USD                                 CHF/USD

Maturity

Bid

Ask

Bid

Ask

Spot

6.2681

6.2789

1.5282

1.5343

30-day

6.2538

6.2641

1.5226

1.5285

90-day

6.2104

6.2200

1.5058

1.5115

a. Describe the currency transaction that Omni should undertake to eliminate currency risk over the 30-day period.

b. Calculate the following:

  • The CHF/ZAR cross currency rate Omni would use in valuing the Swiss equity portfolio.
  • The current value of Omni's Swiss equity portfolio in ZAR.
  • The annualized forward premium or discount at which the ZAR is trading versus the CHF.

Reference no: EM13919837

Questions Cloud

How do you calculate compounding interest : Mr. Miser loans money at an annual rate of 20 percent. Interest is compounded daily. What is the actual rate Mr. Miser is charging on his loans? How do you calculate compounding interest?
Periwinkle manufacturing company : Periwinkle Manufacturing Company has the following budgeted costs for 10,000 units
Define ways management philosophies are indeed complementary : Let's assume that a manufacturing cell is implemented for a product. This assumption incorporates JIT manufacturing principles into the ABC costing system implying that they are complementary. Discuss some of the ways that these two management phi..
Accounting for stock dividends and stock splits : The following transactions occurred during the year in the following sequence: Declared and distributed a 10% stock dividend on the outstanding common shares at a time when the common shares were selling for $15 per share. Calculate the par value per..
Describe the currency transaction that omni should undertake : Describe the currency transaction that Omni should undertake to eliminate currency risk over the 30-day period. Calculate the following: The CHF/ZAR cross currency rate Omni would use in valuing the Swiss equity portfolio.
Tan and sin buttons coding in xcode : Web and mobile development - I have attached an mobile app which is a calculator, It is working just need the tan and sin buttons coding in xcode, i have got the log button working
Business applications case understanding real world : Business Applications Case Understanding real world annual reports.
Identify the customer expectations for service and product : Explain the JIT philosophy, Identify the customer expectations for the service and/or product and  Describe the production process steps observed
Sales from the contract are forecast : Sales from the contract are forecast at $380,000 each year. Variable costs are estimated at $250,000 the first year, and Jo believes they will decrease at the rate of $5000 per year, as they become expert in growing the new items in the new greenhous..

Reviews

Write a Review

Operation Management Questions & Answers

  What similarities do you notice between the approaches of

identify two companies in unrelated industries that use tpm approaches to ensure reliability in the products or

  Finnish furniture manufactures tables in facilities located

finnish furniture manufactures tables in facilities located in three cities-reno denver and pittsburgh. the tables are

  Considering purchasing equipment

Lefler Company is considering purchasing equipment. The equipment will produce annual cash inflows of $44,000 for 3 years. Lefler requires a minimum annual rate of return of 8%. Assuming that the cash inflows are received at the end of each year, wha..

  Descirbe type of matrial handling systems used in warehouses

Descirbe the type of matrial handling systems used in warehouses?

  Which function do you believe managers use most often

Describe that experience to your classmates using research support from the text or another viable source (you may not use Wikipedia). Which function do you believe managers use most often. What could have made the leadership function a better exper..

  Intro to cost management system

(Management control systems) Following are activities that are components of a management control system in a production department. For each item listed, discuss whether it is a detector, assessor, effectors, or communications network: Comparing act..

  Organization has implemented a quality-related strategy

Describe how an organization has implemented a quality-related strategy that involves leadership, teamwork, governance OR organizational culture. choose one.

  Competent people-appropriate methods-tools and techniques

There are four (4) critical success factors that are important for effective risk management: supportive organization; competent people; appropriate methods, tools and techniques; and simple, scalable process. Determine three (3) obstacles for an org..

  Difference in deadlock prevention and deadlock avoidance

What are the role of commit and abort at the end of a transaction. What three conditions must be satisfied in order to solve the critical section Problem? What is the difference between deadlock prevention and deadlock avoidance?

  What challenges exist for companies as their market grows

What challenges exist for companies as their market grows suddenly and exponentially?

  Change in internal environment affect management strategy

Identify how the changes in the internal environment affect the Operational Management strategy for a company. For example, what impact are the following factors likely to have on OM strategy?

  Construct a house of quality to provide the organization

Imagining yourself to be the customer, construct a House of Quality to provide the organization with your perspectives on what the important dimensions of quality are and how well the organization is currently meeting your needs. Develop a SPC checkl..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd